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Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines, $830000; machining, $1950000; and inspecting, $630000. Information
Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines, $830000; machining, $1950000; and inspecting, $630000. Information on the two products is:
| Mini A | Maxi B |
Direct labour hours | 13000 | 24000 |
Machine setups | 600 | 400 |
Machine hours | 29000 | 31000 |
Inspections | 800 | 700 |
Overhead applied to Maxi B using activity-based costing is
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